SEC’s appeal lacks key evidence, including dismissed expert testimony and investor reliance.
Court filings show many XRP investors were unaware or unaffected by Ripple’s efforts.
SEC relies on a hypothetical investor, despite no real evidence of profit expectations.
The SEC is appealing the recent court ruling in the Ripple case, even though it lacks strong evidence to support its claims. The agency is struggling to prove that XRP buyers expected profits based on Ripple’s efforts.
Judge Torres ruled that Ripple’s actions, including the sale of XRP held in escrow, did not influence price movements enough to establish investor expectations of profit.
The SEC’s case now depends on convincing the appeals court that these programmatic buyers wanted returns based on Ripple’s operations. The SEC wants to argue this point even though the court rejected their own expert testimony on this matter.
The expert opinion, which was key to the SEC’s argument, was dismissed due to lack of a reliable methodology. Defendants successfully argued that the expert’s assumptions about what a “reasonable XRP purchaser” believed were speculative …
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